Electricity Crisis: Governors Mull Inter State Power Collaboration

…seek licence for new DisCos

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The Nigerian Governors’ Forum (NGF) is considering plans for states to export and import electricity among themselves.

This was contained in NGF policy recommendation to the Ministry of Power on the National Integrated Electricity Policy and Strategic Implementation Plan (NIEPSIP), as seen by New Telegraph yesterday.

According to the document, the governors canvassed the development of policy to ensure states with excess generation capacity to either export to the national grid or to their fellow states and vice versa.

NGF also suggested that states should be allowed to freely design their market without interference and in line with the unique socioeconomic factors that favour it such as sources of power, either wind, solar, gas, hydro etc.

According to the document, NGF also urged that where states power generation licensees produce more than the state’s requirement, it should be free to export such to other states or the national grid and vice versa.

The document read: “Many states may rely on the national grid for bulk supply of power, rather than license new generation plants due to technology or market viability constraints.

“In the same vein, states with excess/surplus generation capacity from their wholesale markets may need to make that capacity available to the national grid as spinning reserves for grid stability or sell to other states with less power generation resources.

Besides these two instances, there might also be other reasons for such bilateral interconnections or inter-state power transactions.” The document also showed that NGF was canvassing that licences be given to new players in the distribution unit of the power sector.

According to the document, the intention is to increase electricity supply across the 36 states. It also revealed that NGF had recommended granting licences to new power distribution companies (DisCos) in various territories and geopolitical zones across the country.

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